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Netflix streaming to Washington

Netflix’s need for representation from lobbyists and in government relations is growing. |
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“Netflix’s biggest problem is that its delivery system is also its competition,” said Paul Gallant, telecom industry analyst for MF Global. “Broadband providers have pricing leverage, and they can make life more expensive for Netflix in many ways.”

Plus, Netflix is feeling increased competitive pressure from Apple and Amazon, which are rapidly expanding their online movie and TV show portfolios. Increased competition means Netflix has less leverage to strike favorable licensing deals with Hollywood studios as electronic distribution rights become more valuable. Some analysts said that was Netflix’s main motive behind splitting up the DVD-by-mail and online streaming service.

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“Streaming is the future of Netflix,” said Roger Entner, founder of Recon Analytics. “Their lobbying efforts are really focused on making sure they can continue to run their service over wireless and wireline networks. It’s absolutely critical for them.”

Streaming takes a huge amount of bandwidth — so much that it’s causing friction with the companies carrying traffic to Netflix customers. Level 3, which carries the bulk of Netflix’s video traffic between the larger networks, cried foul earlier this year when Comcast started to charge higher fees for connecting with that traffic.

If other Internet service providers start to charge more for those traffic-carrying agreements, Netflix might have to raise its own prices. And if Netflix learned anything from its latest spat with its customers, it’s that its subscribers won’t stand for more price increases.

“While the July price change was necessary, we are now done with price changes,” Hastings wrote in a note to customers Monday, announcing that its services would remain on one website.

Going forward, Netflix will be watching the current court battle over the FCC’s net neutrality rules. It’s also watching potential plans to scale back postal delivery, since it sends its DVDs via mail. Netflix has also hired lobbying help in Canada, where usage-based pricing for broadband has become a hot-button issue.

“As rival services ramp up, Netflix will need to seriously consider pricing concessions to win back the favor of its once loyal customer base,” said Paul Verna, senior analyst at eMarketer.

Despite consumer consternation, Netflix is expected to keep growing. Its streaming-only service is expected to grow to more than 34 million subscribers and its revenue to more than $3.6 billion by 2013, according to a Credit Suisse forecast. It’s expanding its offerings too: Netflix has bought rights to MGM, Viacom and Sony content. In the past couple of weeks, it has added thousands of TV episodes from major networks and cable channels to its selection.

Am I the only one that finds it messed up that a company needs a "Washington presence"? This is exactly what's wrong with America and why the left is screeching about how nobody gets rich without government. Because you have to have a "Washington presence" so that your business doesn't get screwed over by the ever increasing mountain of regulations that Washington generates. HORSE POOP.

Iran attempts assasinations on US soil due to Obama's pathetic foreign policy and

This is amazing, check out the link below. Obama's apology tour never ends. Apologizing and sending condolences to an Al-Qaeda member, are you kidding??? Hiroshima and Nagasaki??? Does Obama really think saying we're sorry we killed your jihadist son is really going to make the family feel better about America? This guy is so far left, he is divorced from reality.

He loses more and more respect every day. This is why Iran was willing to attempt a brazen assassination in the U.S. I don't think they would've tried that with Reagan or even possibly under Slick Willie.

Reed Hastings needs to be FIRED! Netflix should be focusing on thier customers and product, not Washington DC. Their current offerings - both DVD and streaming - suck! Hastings has taken a very sucessful company with a huge customer base and run it into the ground. Certainly not worth the money.